Guaranteed Accomplishment with Newest Dec-2025 FREE ACAMS CAMS [Q146-Q167]

NEW QUESTION 146
Which event occurs most frequently in money laundering in the insurance industry?

Getting a reimbursement from an overfunded policy

Purchasing full-term insurance bonds

Failing to take advantage of the free-look period

Redeeming a policy at the end of its term

NEW QUESTION 147
Under the USA PATRIOT Act, in which scenario would the US not have jurisdiction?

US bank subsidiaries located in foreign jurisdictions

Foreign branch of a bank located in the US

Foreign bank with a US correspondent account

Shell banks operating in foreign jurisdictions

NEW QUESTION 148
Which actions are involved when a prosecutor instructs a bank to freeze the assets and bank accounts held by one of its clients? (Choose three.)

Inform other banks in the same geographical area to freeze the client’s assets if they are a member of that bank, too.

Extend the account and asset freeze to the client’s family members as a precautionary measure.

Ensure the client and beneficiaries are unable to access any frozen assets during the freeze order.

The institution does not need to comply with the request if the client’s assets make the task unusually difficult or complex to access.

An affidavit must accompany the freeze order for the bank to comply with the request.

The institution should obtain a copy of the court order to freeze the assets of the named individuals.

NEW QUESTION 149
Abank received a subpoenaregarding one of its clients. TheFinancial Intelligence Unit (FIU) of the bank should review the subpoena and:

File a Suspicious Activity Report (SAR), including the receipt of the subpoena in the SAR narrative.

Perform a transaction reviewand respond fully to the subpoena.

Close the client’s accountby informing the client of the subpoena.

Adjust the client’s risk scoreand close the case.

NEW QUESTION 150
A bank is preparing for a regulatory exam after a previous regulatory exam identified weaknesses in the bank’s AML program. Since the last exam, the bank has improved the written AML program, hired an experienced AML compliance officer, and has taken actions to demonstrate a strong culture of compliance.
The bank is now focused on getting through their transaction monitoring case backlog and completing enhancements to its sanctions screening program.
Which of the following are correct? (Select Two.)

The bank is likely to face secondary sanctions from global financial institutions despite addressing many of the previous concerns.

The bank may face civil or criminal penalties if it is unable to demonstrate sustained improvement in addressing the previous concerns.

The bank may face the risk of regulatory orders to remediate its AML program despite addressing many of the previous concerns.

The bank is protected from reputational risk arising from any regulatory action because regulatory orders must remain confidential.

The regulatory agency may require the bank’s board of directors to publicly share the actions taken to address the previous concerns in order to limit its reputational risk.

NEW QUESTION 151
After review of the financial institution’s enterprise-wide anti-money laundering risk assessment, the new compliance officer identifies several deficiencies that need attention.
Which deficiency could lead to the highest potential for unmitigated risk?

The risk assessment is several years old and does not cover all current products and services.

The risk assessment is revisited too frequently thereby diverting critical resources from other compliance tasks.

The risk assessment is managed by a different team from the previous assessment therefore disrupting continuity of institutional knowledge.

The risk assessment does not anticipate potential risks even though the financial institution has no immediate plans involving those risks.

NEW QUESTION 152
A local law enforcement officer, who is conducting a criminal investigation, requests information about a customer.
Which two actions should the bank take? (Choose two.)

Close the account immediately

File a suspicious transaction report

Monitor the account for suspicious activity

Review the money laundering risk posed by the account

NEW QUESTION 153
At a high level, the risk assessment process involves identifying and rating the inherent risks associated with customers, products, countries, and delivery channels, and then:

comparing these risks with industry benchmarks to determine the residual risk.

implementing new controls to eliminate all risks

rating the effectiveness of the related controls in order to calculate the residual risk.

documenting the historical risk incidents for future reference.

NEW QUESTION 154
A US casino customer has won 55,518 USD. The customer goes to the casino cashier cage to execute some transactions. Which ^transactions are an indicator of money laundering? (Select Two.)

The customer transfers 100.000 USD to another personal bank account located outside the customer’s resident country,

The customer requests the cashing out of the winnings in checks under 10.000 USD.

The customer transfers all the winnings to another personal bank account located outside the customer’s resident country.

The customer requests the cashing out of the winnings in a single check.

The customer transfers 50.000 USD to another personal bank account located in the customer’s resident country.

NEW QUESTION 155
An existing customer has changed its business scope and jurisdictions it deals with. Which are the steps the bank needs to take to manage sanctions compliance risk for this customer?

Collect further customer reference data and determine what must be screened and at which frequency.

Conduct further sanctions screening on the customer’s directors and ultimate beneficial owners.

Deploy an independent risk-based test to ensure the screening on this customer is effective.

Perform politically exposed person and negative media screenings.

NEW QUESTION 156
An internal audit team is reviewing the anti-financial crime (AFC) program of its firm.
Which of the following attributes of the third line of defense would be most critical to ensure unbiased and effective oversight?

Consistency of approach

Periodic training of the function

Qualification of the team

Independent testing

NEW QUESTION 157
When must a United States (U.S.) bank block or reject an international funds transfer when there is an Office of Foreign Assets Control designated party to the transaction?

Only if the U.S. bank is involved in the funds transfer

Only if a U.S. person or entity is the ultimate beneficiary

Only if a non-U.S. person or entity is the ultimate beneficiary

Only if the U.S. bank’s correspondent informs it of the involvement of the designated party

NEW QUESTION 158
Which three entities does the Third European Union Money Laundering Directive apply to?

Financial Institutions

Defense Attorneys

Casinos

Real Estate Agents

NEW QUESTION 159
The law enforcement agency (LEA) of a foreign jurisdiction contacts a financial institution (Fl) regarding one of the Fl’s clients. The LEA advises that the client is currently wanted for prosecution as a result of a series of human trafficking charges. What should the Fl do? (Select Two.)

Review the client’s activity, determine if suspicious activity exists, and report accordingly.

Advise the LEA that the government needs to be contacted for extradition.

Comply immediately with the foreign jurisdiction and turn over all client information.

Inform local LEA and regulator of the request for awareness.

Close the clients accounts immediately to avoid any undue risk.

NEW QUESTION 160
An AML compliance officer receives an independent audit report with a number of findings.
An appropriate response to the report would include:

Reperforming the testing for the controls mentioned in the findings to confirm the results of the audit.

Assigning responsibility for reviewing the action plan to the board of directors.

Drafting detailed action plans for the audit team to execute to close the findings.

Defining remedial actions based on the findings’ root cause analysis.

NEW QUESTION 161
An anti-money laundering analyst is reviewing a new customer list to confirm potentially high risk customers have been identified and subject to enhanced due diligence.
Which new customer warrants enhanced due diligence?

A non-profit hospital

A fundraising organization

An employee benefit plan trust

A medical practice limited partnership

NEW QUESTION 162
The compliance officer for a private bank has been tasked with reviewing the procedure for authorized signatories on customer accounts to ensure it is in line with relevant Wolfsberg Anti-Money Laundering Principles for Private Banking.
Which three statements from the procedure are in line with Wolfsberg? (Choose three.)

Where the Authorized Signatory is not a lawyer or accountant, due diligence as to the source of funds and wealth of the Authorized Signatory should be undertaken.

The responsible private banker must establish the identity of a holder of general powers over an account (e.g. a signatory for the account) and, as appropriate, verify that identity.

Where due diligence has been satisfactorily completed on all authorized signers, the responsible private banker may reduce the due diligence performed on the account holder and/or beneficial owner.

The responsible private banker must obtain the necessary documentation establishing the authorized signer’s authority to act on behalf of the account holder or beneficial owner (e.g. a Power of Attorney).

If an individual has signing authority over an account but does not act on a professional basis as a manager of funds, the responsible private banker must understand and document the relationship between that authorized singer, the account holder, and, if different, the beneficial owner of the account.

NEW QUESTION 163
With which person(s) should an anti-money laundering officer coordinate when implementing a new hire screening program?

Internal Auditor

Local Financial Intelligence Unit

Human Resources

Institution’s Regulator

NEW QUESTION 164
The Wolfsberg Principles for Private Banking list circumstances that would require additional due diligence, including activities that involve which three of these choices?

Foreign jurisdictions

High Risk Countries, including those identified by credible sources as having inadequate Anti-Money Laundering standards

High Risk activities, involving clients and beneficial owners whose source of wealth originates from activities known to be vulnerable to money laundering

Public officials, including those individuals who have or had positions of public trust

The Wolfsberg Principles for Private Banking are a set of guidelines for private banking relationships that aim to prevent and detect money laundering and terrorist financing risks. The Principles state that the bank should conduct additional due diligence on clients and beneficial owners in certain circumstances that may indicate a higher risk of money laundering or terrorist financing. Among the options given, A, B, and C are the correct choices that reflect the circumstances listed in the Principles.
Foreign jurisdictions are countries or territories other than the one where the bank operates or where the client or beneficial owner resides. The Principles state that the bank should conduct additional due diligence on clients and beneficial owners who are connected to foreign jurisdictions, especially those that have weak or inadequate anti-money laundering standards, or that are subject to sanctions, embargoes, or similar measures.
High Risk Countries are countries or territories that are identified by credible sources, such as the Financial Action Task Force (FATF), as having inadequate anti-money laundering standards, or as being a source, transit, or destination of illicit funds. The Principles state that the bank should conduct additional due diligence on clients and beneficial owners who are connected to high risk countries, and apply enhanced measures to mitigate the risks.
High Risk activities are activities that involve clients and beneficial owners whose source of wealth or funds originates from sectors or industries that are known to be vulnerable to money laundering, such as cash- intensive businesses, gambling, arms trade, precious metals and stones, or art and antiquities. The Principles state that the bank should conduct additional due diligence on clients and beneficial owners who are engaged in high risk activities, and verify the legitimacy and origin of their wealth and funds.
= The main reference for this question is the document titled “Wolfsberg Anti-Money Laundering Principles for Private Banking (2012)” published by the Wolfsberg Group. You can access it by clicking here. You can also find more information about the Wolfsberg Principles and their application on the Wolfsberg Group website and the Lexology website.

NEW QUESTION 165
According to the Financial Action Task Force 40 Recommendations, Designated Non-Financial Businesses and Professionals include which entities?

Commodities traders

Money services businesses

Hawala operators

Real estate agents

NEW QUESTION 166
A European Union (EU) bank has a correspondent banking relationship with a U.S. bank. Under USA PATRIOT Act Section 311, the U.S. government has enacted special measures against a designated entity that has a payable-through account with the EU bank. Which of the following actions might the U.S. bank be required to take regarding the EU bank’s services for the designated entity?

Ensure the designated entity’s confidential information is not shared with other entities.

Obtain additional information about customers permitted to use this account.

Verify that the EU bank serves the designated entity.

Perform enhanced due diligence on the EU bank.

NEW QUESTION 167
Which two factors assist a money laundering investigation that involves multiple countries? (Choose two.)

Law enforcement and other authorities should have access to financial information that is pertinent to the investigation.

Every country should share all their information with foreign law enforcement and government authorities to facilitate rapid investigations.

Law enforcement and other authorities should be allowed to establish and utilize joint investigative teams with law enforcement in other countries.

Law enforcement and other authorities should not expedite information sharing between countries to ensure that all information is provided at the same time to avoid premature conclusions.

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